GREAT WESTERN RECLAMATION, INC.1971 (2)

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Tfl : CITY Of SWITfi CALIFORNIA June 17, 1971 Please address replies to: MEMO TO: City Council FROM: City Manager SUBJECT : GREAT WESTERN RECLAMATION CONTRACT Accompanying this memo are communications from Mr. Tom Blackman, President of Great Western Reclamation, Inc. I am sure you are aware that they recently settled a union bargaining contract which very materially increases the operating costs of Great Western as well as most of the other major contractors for city refuse collection in Orange County. You will also know that Mr. Blackman has asked for a rather large number of amendments to his existing contract to the point that in my opinion it would be impossible for us to even comment upon, let alone make recommendations upon, all of these items by this Council meeting. We have, however, made a rather extensive check on his unit increases in costs as well as kept in close communication with the other major affected cities . It is my strong opinion that equity of treatment of the contractor will demand that he obtain at least a 15per month in- crease per water meter. I do not declare this to be a final figure, and certainly we have no recommendations on the many other items in question; neither does Mr. Blackman accept the 15 figure as from his position an adequate one to compensate him for his increased costs . However, his contract was retroactive to the 1st of May, and unless he gets some temporary relief, he will be operating at a serious loss disadvantage. It is for this reason that we are recommending that the Council authorize the 15c figure over and above his present payment rate to be effective during the months of June and July during which time we will undoubtedly complete our studies of the matter and. will be ina position to recommend to the City Council answers to Mr. Black- man' s request for consideration of changes in his contract as well as make recommendations to the Council as to what we believe to be to the best interest of the City. ge7117 rk 11 in !nl (/ /.a cJc Fes. ane � �r _ Jz e Carl J. Thornton Com` City Manager ms \ i ec � Q (37l, ititzt Attachments 49 2 f/!7! --f_e'-e-R-' e O DA ' ' (QS cd2. CLERK OF THE cou.N9,.9t..